1. Field of the Invention
The present invention relates to methods and systems for operating a credit card validation system.
2. Description of the Related Art
Transaction cards, such as a credit cards, debit cards, or prepaid cards, have become a common instrument for the purchasing of a wide variety of goods and service. When a holder of a transaction card presents the card to a merchant in order to purchase goods, services or distribution of currency, some form of authorization by the card issuer is sought by the merchant in order to minimize theft and risk of loss to the merchant. For this purpose, electronic authorization networks have been developed wherein a merchant uses a terminal to read account information encoded on a magnetic strip located on the back of the transaction card. The terminal then automatically calls a central processor, operated by the network, that analyzes the authorization request. The call from the terminal is typically routed through a local financial institution or transaction card issuer. Normally, the card reader appends a vendor code to the account information during each transaction, wherein the vendor code identifies the business so that proper credit for the transaction maybe given to the correct business. A sales clerk or other vendor employee may also provide information to be transmitted to the central processor, such as the last four digits of the account number and the amount of the purchase.
Along with the increased use of transaction cards, there has been an increase in the amount of improper use of transaction cards. However, many of the methods used to reduce or prevent improper use of these cards require some type of verification that the card holder or user is an authorized user, for example by requiring the entry of a secret personal identification number (PIN).
Methods requiring this type of verification from the card holder, while being effective in preventing use of stolen transaction cards, have inadvertently led perpetrators to force authorized users to provide such verification under threat of harm. Essentially, these methods reduce transaction card theft at the expense of the card holder""s safety.
Furthermore, even if the authorized user is not herself being threatened, conditions may exist that cause a store clerk to be afraid of confronting an unauthorized user by refusing a proposed transaction. Under such a real or perceived threat of harm, the unauthorized transaction may be prevented at the expense of the store clerk""s safety.
Therefore, there is a need for a method or system that would allow a store clerk to notify authorities of a possible fraudulent or coerced use of a transaction card. It would be desirable if the method or system would notify authorities without such notification being detectable to a perpetrator.
The present invention provides a method, computer program product, and system for alerting authorities during a transaction card authorization process whenever the vendor suspects the transaction maybe criminal and is fearful of accusing the suspect or asking the suspect to surrender the card. The method comprises receiving a vendor code from the vendor, with each vendor request for transaction card authorization, wherein the vendor code selectively includes either a duress code or a normal code. Authorities are then notified of a suspected crime in progress if the vendor code includes the duress code. The duress code may include one or more alphanumeric characters added to the beginning or end of the vendor code, where each of the one or more alphanumeric characters is pre-determined to be the duress code. If the vendor suspects that the account transaction is criminal, then the vendor enters the duress code. If the transaction appears normal, then the vendor enters alphanumeric characters other than those of the duress code to indicate the transaction is a normal transaction. Alternatively, the duress code may be an entirely different code, independent from the normal vendor code.
It is anticipated that the vendor would enter the duress code whenever the vendor suspects a transaction card used in the account transaction is stolen, the vendor suspects a debit card used in the account transaction is stolen, the vendor is under a threat to proceed with the transaction, a customer is under a threat to proceed with the transaction, or combinations thereof.
When the authorization computer receives the account approval request from the vendor, the request will always contain the vendor code for identification of the vendor. In many cases, the vendor code is programmed into the card reader so that the vendor code may be automatically transmitted as part of all account approval requests without manual entry. Depending upon the sophistication of the vendor""s system, the amount of the proposed transaction may either be manually entered or automatically uploaded from a cash register for inclusion in the account approval request. Finally, the account approval request will also include either the normal code or the duress code.
Upon receiving the request from the vendor, the authorization computer will retrieve a vendor record from a verification database, wherein the stored duress code is contained in the vendor record. The authorization computer then compares the code received with the stored duress code, and notifies the authorities if the sent code matches the stored duress code. The authorization computer notifies the authorities by means selected from a telephone call using an interactive voice response system, a computer network connection displaying the notification on a display screen, or combinations thereof.
The step of notifying authorities further comprises retrieving a vendor record from a verification database, wherein contact numbers for the relevant authorities are contained in the vendor record. The authorization computer then uses the contact numbers to call the authorities and provide the authorities with the name and address of the vendor and alert the authorities of a possible crime in progress at the address of the vendor.
The foregoing and other objects, features and advantages of the invention will be apparent from the following more particular description of a preferred embodiment of the invention, as illustrated in the accompanying drawings wherein like reference numbers represent like parts of the invention.